A will allows you to distribute your assets as you wish when it’s time to pass them on to your heirs. An executor will implement your will when the time arrives. While it is a good idea for most people to have wills in place, it costs money to set them up. This guide will cover the importance of wills and how much it can cost to create one.
Understanding the Importance of a Will
Wills can prevent arguments about your assets from emerging. If you lay out the terms and how you want your assets distributed, there is less room for arguments. You can feel certain that each of your heirs is receiving what you want them to receive and not a penny more.
Receiving professional legal advice can make the process more seamless. You can receive guidance on the type of language to include in your will and how to distribute more complex assets. Good verbiage will help the executor make sure the right funds go to the right people.
What is the Average Cost of a Simple Will?
The average cost of a simple will depends on several factors, such as the attorney you work with, your location and the complexity of your estate. You can technically create a will for free, but seeking professional help can ensure it is effective. A professional can avoid confusion between your heirs and minimize potential quarrels by helping you create an effective will. A will can cost $100 to $250, but you may have to pay more for a more experienced attorney. You may have to pay closer to $5,000 if your estate is more complex.
Factors Affecting the Cost of a Will
The cost of a will depends on several factors. These are the details to keep in mind when budgeting for a will.
Complexity of the Estate
The size of your estate and the types of assets influence the complexity of the will. Someone who is only distributing assets from a stock portfolio has a more straightforward will than someone with stocks, real estate, businesses, collectibles and other assets.
The complexities also depend on the type of will you use. Spouses often have wills where the surviving spouse receives assets from the deceased spouse. But spouses may have different heirs listed on their wills. The heirs’ fortunes and the heirs themselves depend on which spouse lives longer in this scenario.
If you pass your assets onto a child, a trusted adult must hold onto the assets until the minor reaches age 18. Some wills give the child access to the assets upon turning 18, while other wills offer gradual access to the assets.
Type of Will
Simple wills are the most straightforward type of will and cost less. They are easy to write and easy to modify.
Other wills, such as the testamentary trust will, are more complex. This will move your assets into a trust and can help with more complex portfolios. You can require certain benchmarks before distributing assets, such as an heir reaching the appropriate age. It’s still a relatively affordable choice, but probate is unavoidable.
Joint wills involve both spouses agreeing on the estate planning. When one of the spouses passes away, the estate planning cannot be changed. The probate can take up more time and increase total costs, but a joint will is cost-effective compared to each spouse having a separate will.
A living will allows you to choose someone to make decisions for you if you end up with a medical condition. This will is useful for people who are nervous about their medical status and what can happen within a few years.
A pour-over will is another option to consider, but legal disputes can get costly. The executor retains control over the assets, which gives you more privacy when you create your will.
Geographic Location
Each area has varying legal fees and associated costs. You may have to pay more legal fees if you live closer to a large city. Contracts Council compiled a study that details the hourly rates for lawyers in each state. Living in areas with a high demand for legal services or a low supply of legal professionals can result in higher charges.
Attorney’s Experience and Reputation
Attorneys with more experience in crafting wills tend to charge higher rates for their services. Paying extra money for additional experience can create fewer headaches when it comes time to execute your will.
You can gauge an attorney’s experience by looking at their years of experience and reading through customer reviews. Attorneys may also have websites that highlight customer testimonials and give you a better idea of how they can help.
Common Ways to Create a Will
Consumers have several ways to create wills. These are some of the common choices to consider.
Hiring an Estate Planning Attorney
An estate planning attorney can walk you through the process of crafting a will and making sure it is valid. These attorneys provide personalized advice and help clients create customized wills that clearly detail the distribution of assets.
Online Will-Writing Services
Some people turn to online will-writing services to save money and create a will faster. These tools are more convenient and offer templates that can match your individual needs and comply with applicable laws. But these tools do not provide personalized advice or the same level of comfort you may get from an attorney.
DIY (Do-It-Yourself)
The DIY approach is the most cost-effective. You don’t have to pay any money to create your own will. However, any mistakes can complicate the distribution of assets and create headaches for your heirs. You can do it yourself through thorough research and determining the legal requirements, but a professional can offer guidance and take care of it for you.
Prepare Your Will the Right Way
Seeking professional help can help you craft a will that is legally sound and distributes assets as you desire. A will is a vital document that can create less stress for your heirs. It is an investment that can be well worth it in the long run.
Frequently Asked Questions
What factors determine the cost of creating a will?
The attorney’s experience, your location, the type of will and the complexity of your estate impact the cost of creating a will.
How much can I expect to pay for a professionally drafted will?
The cost for a professionally drafted will can come to a few hundred dollars, but it depends on several factors.
Are there alternative options for creating a will at a lower cost?
You can create a will on your own or use software to produce the will for you. These cheaper options are better for people who have less complex estates.
About Alison Plaut
Alison Kimberly is a freelance content writer with a Sustainable MBA, uniquely qualified to help individuals and businesses achieve the triple bottom line of environmental, social, and financial profitability. She has been writing for various non-profit organizations for 15+ years. When not writing, you will find her promoting education and meditation in the developing world, or hiking and enjoying nature.